Palmetto HASI Holdings, a joint venture specializing in providing residents with solar power solutions, will sponsor a $286 million securitization backed by leases and other contracts associated with solar installations and energy storage equipment.
Just one class of notes will be offered through the Sabal Issuer 2025-1 transaction, the class A tranche, and it has a final maturity date of October 2060.
A diverse pool of 14,970 leases and power purchase agreements will secure the transaction, KBRA said. As of the March 14 cutoff date, the securitization's share of the aggregate discount solar asset balance (ADSAB) is $401.9 million on the PV6 ADSB and $342.2 million on the PV7 ADSAB. Analysts calculate ADSAB using cashflows minus several expenses, including other elements such as cashflows payable to the tax equity holder
The joint venture brings together Palmetto Solar, a North Carolina company that provides storage and electricity storage solutions to residential customers, and HA Sustainable Infrastructure Capital, which invests in a range of infrastructure assets including utility-scale solar, onshore wind, energy storage and renewable natural gas.
Palmetto Solar originated the contracts, while Sabal Depositor 2025-1 is the depositor on the deal.
The structure also includes credit enhancement from overcollateralization representing 16.4% of the pool balance. There is also a liquidity reserve account fully funded to its required amount, equal to six months of interest on the class A notes.
KBRA pointed out that a letter of credit can satisfy the reserve funding requirement. Also, excess collections will help maintain that liquidity reserve.
Antillean Solar 1 and 2, and Bermuda Project are the project companies that own the PV systems, and when the deal closes Sabal Issuer 2025-1 will have a managing member interest in each of the three project companies, KBRA said.
